Young, wealthy investors (ages 21-43) are gravitating towards alternative assets like hedge funds, private equity, and crypto, with nearly one-third of their portfolios in these categories. 

They allocate less than half of their portfolios to traditional stocks and bonds, contrasting with older investors who prefer these conventional investments. This younger generation's investment preferences are shaped by greater access to diverse asset classes and experiences like the financial crisis.

 They also hold higher cash allocations for liquidity, despite the potential risks of underinvesting. Diversifying into alternatives comes with unique costs and risks, including higher management fees and illiquidity.

Finsum: The introduction of crypto and many web 3.0 products have really spurned the growth of alts for younger investors.